ID theft hits record high
BUSINESSES which cut back on fraud prevention during an economic downturn risk even greater losses, a Teesside University expert said today, as figures showed identify theft had hit a £1.3bn high.
Fred Hutchinson, director of Teesside’s Centre for Fraud and Financial Crime, which has been shortlisted for a Times Higher Education Award for Outstanding Employer Engagement Initiative, said: “We are already seeing fraud prevention budgets, including training, being reduced as these are easy areas to target in a downturn, despite the risks involved.”
He said there were two main threats.
“As personal and business finance comes under pressure, people look elsewhere for a bargain - and it’s this gap that can be filled by petty criminals.”
He added: “Managers of business organisations facing a drop in profits may be pressured to present accounting statements in the best light possible.
“An organisation that cannot operate to some extent on trust will soon fail as nothing can get done.”
Mr Hutchinson added that businesses had placed less emphasis on fraud prevention and more on efficiency and cost reduction.
“This suggests that organisations are not fully aware of the reputational costs and direct losses arising from fraud,” he said
